INCOME TAX OFFICER Vs. A J LOPEZ AND SONS
LAWS(IT)-1989-5-2
INCOME TAX APPELLATE TRIBUNAL
Decided on May 30,1989

Appellant
VERSUS
Respondents

JUDGEMENT

A.V. Balasubramanyam, Judicial Member - (1.)THE question involved in the appeal is whether registration to the firm (assessee) is or is not to be granted.
(2.)M/s. A.J. Lopez & Sons (firm) is. the assessee which was treated as an unregistered firm in the assessment for 1978-79 for which the previous year terminated on 31-7-1977. M/s. AJ. Lopez & Sons had been formed by A.J. Lopez and few others and this had undergone certain changes with effect from 10-3-1976. The firm was reconstituted by indenture dated 15-6-1977. As per that indenture, AJ. Lopez and three other partners were relieved. The reconstituted firm comprised of four partners (Majors). They are the wife and three sons of AJ. Lopez. These partners admitted a minor (Silvister Lopez) to the benefits of the firm. The minor was then aged17 and he was the youngest son of the retired partner AJ. Lopez and the first partner in the reconstituted firm, Mrs. Floe Lopez. The reconstituted firm was effective from 31-5-1977.
The partners applied for registration by filing Form Nos. Hand 11A and the four partners had signed it. The Income-tax Officer passed an order under Section 185(1) declining registration. The reasons can be listed as follows.

(3.)IT is stated that the reconstituted document dated 15-6-1977 had not been signed by the guardian of the minor who was admitted to the benefits of the firm. The second was that the forms had not been signed by the guardian of the minor. Lastly, that the profits of the firm had not been arrived at by actually closing the books of account on the day previous to its change in the constitution and that it had been allocated only on time basis. The Commissioner of Income-tax (Appeals) did not approve any of them, and rightly too in our opinion.


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